Crap spreads in Ag futures

Discussion in 'Commodity Futures' started by og5, Nov 15, 2007.

  1. og5

    og5

    Agriculture futures seem to have terrible spreads all around. Few examples:

    ZW - 8 ticks between bid/ask = $100/contract

    CT, 10 ticks = $50

    SB, 10 ticks = $112

    Am I reading these right? I don't see how someone can make money off of those...
     
  2. svrart

    svrart

    hi,

    during regular trading hours, the spread is tighter. i trade these fairly regularly but my holding period if successful is in the months, so the spread is not of much consequence. sometimes if the market appears bad i will dump it off-hours regardless of the spread.

    svr
     
  3. Ag stuff tends to be positional, basically.


    Check daily volumes for an idea of it, it can get thin, (understatement of the year) so it doesnt tend to be a daytrader's thing.

    Instead of using a five minute on an index to find a spot on the 15 min, (etcetc) one might look at an hourly, for daily or weekly positions, that kind of thing.
    Generally speaking.